Neat. I disagree with their estimate. They have a vested in streets to say otherwise. Common sense says otherwise. Aside from riding in taxies or catching Ubers, I so similar things tip as most people in this country that requires/suggest tipping. CC are used in the vast majority of transactions in this country and most have places for tips.
Actually, tips go unrepoarted, which is why you are allowed to pay waitresses sub-minimum wage, because it is assumed they get tips that go unreported.
Both presidential candidates have endorsed a policy of no tax on tips. But would this approach really help the low-income workers it’s meant to support? Fellow Joyce Beebe reviews the current tax treatment of tip income, summarizing the main arguments against such a policy, potential impacts...
www.bakerinstitute.org
However, a 2018 Treasury Inspector General for Tax Administration (TIGTA) report points out that
compliance was not ideal even for businesses with tip agreements. In 2016, 30% of businesses that had tip agreements with the IRS collectively underreported
$1.66 billion in tip income. Noncompliance for businesses without tip agreements was even worse. The agency identified over 15,000 employers that underreported a total of
$6.3 billion in tip income (an average of $420,000 per employer), with 676 of them underreporting by over $1 million each. In 2023, the IRS
revamped the tip reporting compliance program, hoping to take advantage of the increased use of electronic payment systems at the point-of-sale.
Of course. Tax the “rich”. Simplifying means getting rid of the IRS and just adding a VAT tax, for example, with a few exceptions for food and other necessities. You would hate that though because then the “poor” would be paying their fair share too without the child tax credits(welfare for those that pay no federal income taxes) and other giveaways. We can’t have that.
Most countries that have instituted a VAT have also kept an income tax, because a VAT didn't generate the expected revenues.
Here's the problem with a VAT. People will cut back on their spending. They will be less likely to go out to eat. They will be less likely to buy that new TV set that has a slightly better picture if the old one is still functional.
Not sure why you are so keen to punish the poor. Do your neighbors at the trailer park make you that angry?
Of course there are places to cut. Each of the departments you mentioned have inefficiencies. They could be cut without decreasing any benefits. The government is woefully inefficient because they aren’t forced to be. If they have a shortfall, they just ask for more money, thus increasing their budget for the following quarter/year. (No zero based budgeting) They don’t function like business in the real world, but it is long past time that they are forced to do so.
Guy, you've been singing that song since Ronnie Ray-Gun. No one believes it anymore.
Businesses in the real world kind of suck, guy. They also have the option of outsourcing jobs to Mexico or India. I think there's be an outcry if our government did that.